An aggressive Payment-in-Kind toggle issued bythis week has enabled owner Platinum Equity to recover all the cash it used to acquire Volvo Rents from Volvo Construction Equipment, according to msn.com. According to analysts close to the situation, Platinum recovered more than $200 million in equity it paid as part of the $1.1 billion acquisition.
Analysts were surprised at how quickly Platinum was able to recover the cash, saying they had not seen such a speedy deal since before the financial crisis. The quick PIK raised leverage to about 6.5 times EBITDA. Investors said the deal is indicative of strong growth potential for the Shippensburg, Pa.-based rental company formerly known as Volvo Rents.